The traffic that online casinos are getting is on the rise globally. The online casino market is growing at over 12% per year. At this exponential rate, the online casino market has become saturated.
When you do a quick Google search, plenty of online casinos are specific to your geolocation. But why are online casino businesses more successful than land-based ones? Well, this question is what we aim to demystify in this article.
Reasons Why Online Casino Businesses Are Successful
A couple of factors influence the growth of the online casino industry, making it more successful than land-based casinos. Below are some of those features that contribute to its incredible success.
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Wide game variety
The most apparent reason behind the immense success of online casinos is that casino software solutions are improving exponentially. The software at an online casino is what powers the platform. The more diverse the software at an online casino platform, the more alluring the platform will be to punters.
Compared to land-based casinos, online casinos can feature more games. At an online casino, you can find thousands of casino games in its game lobby, while at a land-based casino, you can only find a few. As such, punters can access a much wider variety of casino games when they choose to play at an online casino.
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Low overhead cost
According to research, the global online gambling industry is predicted to reach $127.3 billion by 2027. This projection is achievable because online casinos have very low overhead costs compared to land-based casinos. Setting up a land-based casino is a costly undertaking. With rising inflation and energy costs, it’s even more expensive to run a land-based casino. Its operator will have to bear the cost of the building, the cost of buying the casino gaming machine, and pay employees to run the casino games, among other expenses.
Whereas, with online casinos, all operators must consider the cost of web development, marketing, IT, and maintenance. With SAAS from software developers, online casinos can keep their supply of games low. With such a significant difference in overhead costs, operators have a much higher advantage when competing for punters, such as by offering bigger bonuses, games payout more often, etc.
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Flexible and affordable licensing options
Another reason the online casino industry is booming is that it is much easier to acquire a license to run an online casino than a land-based casino. With some online casino licenses, operators can operate and accept players from all around the world. With a land-based license, the operator can only function within the jurisdiction where it acquires the license.
Online casinos also have the option to apply for an offshore gambling license which gives them a combination of cost-efficiency, tax optimization, and streamlined setup. Examples of these offshore gambling licenses for online casinos include Malta, Kahnawake, Curacao, etc.
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More payment methods are available.
Another reason online casinos are successful is that punters find it easy to make deposits and withdrawals from their accounts. Compared to land-based casinos, online casinos feature more deposit and withdrawal options. This includes payment options like Bank transfers, e-wallets, cards, cryptocurrencies, etc.
The significance of online casinos accepting mobile payments is that it allows punters to choose the most convenient option. It is estimated that in 2023, we can expect up to $1.3 billion in payment transactions using mobile devices worldwide. With more people switching from the use of cash to mobile payment methods, online casinos are the ones to benefit the most.
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Flexible limits
Typically, online casinos offer punters much better flexibility regarding their finances than land-based casinos. You will find this flexibility regarding the minimum and maximum betting limits at online and land-based casinos.
Because online casinos have a much lower overhead cost, their operators can afford to offer punters more flexibility. As such, this translates into much lower and higher limits than brick-and-mortar casinos. So, you don’t necessarily need to be a high roller to be able to play your favorite casino game at an online casino.
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Geographical flexibility
Because the audience for online casinos can be located anywhere in the world, this contributes significantly to their massive success. Unlike land-based casinos, whose audience must be present at their location to play games, punters can access online casinos from anywhere in the world. Some online casinos even open their doors to a vast range of geolocations.
And with the rise in the number of people in programming, as opposed to manufacturing jobs, it’s expected to see significant success in online casinos. Also, since online casinos break the bearer of geographical restrictions, they can attract more punters to use their facilities. As such, the more punters who visit and use online casinos, the more successful the industry will become.
Conclusion
Overall, as you can see from this guide, the success of the online casino industry didn’t spur overnight. It’s been a gradual process as technology advances; more users are shifting from land-based casinos to online casinos. Many online casinos give punters the same experience as a land-based casino with its live dealer feature. The option to access casinos from the comfort of your home is the major selling point of online casinos, something land-based casinos cannot beat.
